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Friday, February 14, 2014

Ex-PDZ chairman Tan proposes to buy O&G Efogen (Star)

Shipping firm PDZ Holdings Bhd’s major shareholder and former chairman, Tan Sri Robert Tan Hua Choon (pic), is in discussions to acquire a 100% stake in Efogen Sdn Bhd, a bumiputra oil and gas (O&G) company providing integrated upstream O&G services and solutions, according to sources.

PDZ has put in a proposal to acquire Efogen in a straightforward cash deal, according to the sources.

On Feb 10, PDZ confirmed with Bursa Malaysia that its major shareholder had held preliminary talks with some parties to explore potential business dealings, but had not deliberated the matter at board level.

Shares of PDZ have been hogging the volume list of the local bourse over the last few weeks. The stock closed one sen lower at 14.5 sen on a volume of 245.6 million shares yesterday.

Efogen, a holder of national oil company Petroliam Nasional Bhd (Petronas) licences, provides O&G services and solutions mainly in geotechnology, marine transportation and support services, and ICT services.

A check with the Companies Commission of Malaysia revealed that the company is headquartered in Megan Avenue, Jalan Tun Razak, Kuala Lumpur. The directors of the company consist of Tan Sri Abdul Rashid Abdul Manaf, Mohd Rosly Mohd Salleh and Johany.

Abdul Rashid is presently the chairman of Eco World Development Group Bhd. He was formerly the chairman and director of S P Setia Bhd. Abdul Rashid is an old hand in the corporate world, having previously held directorships in Loh & Loh Corp Bhd, SMIS Corp Bhd and Pohmay Holdings Bhd.

The company has a paid-up capital of 57.3 million shares of RM1 each. Out of this, GMV-Efogen Sdn Bhd owns 37.3 million shares, while Abdul Rashid and Johany own 12 million and eight million shares, respectively.

For its year ended April 30, 2012 (FY12), Efogen recorded a 21.72% jump in revenue to RM53.69mil from FY11, while net profit came in at RM3.77mil from a previous loss of RM1.63mil.

As of the period, it had non-current assets worth RM138.1mil and non-current liabilities worth RM103.95mil.

The company stated that its nature of business was in providing geophysical services to the O&G industry, trading computer software and hardware apparatus and providing consultancy and maintenance services in related fields, and chartering vessels for O&G offshore support services.

Tan appears to be on a spree to unlock value in his companies.

Only recently, his Malaysia Aica Bhd (Maica) created waves when it saw the entry of low-profile property developer Datuk Ter Leong Yap, who now controls 50% in Maica. Tan’s stake in Maica, after the entry of Ter, is around 14%.

Tan owns 19.13% in PDZ, and has been a shareholder of the company since November 2000. For the first quarter to Sept 30, 2013, PDZ turned around to record a net profit of RM778,000 from a loss of RM265,000 previously. This was on the back of an 18.33% drop in revenue to RM43.6mil. For the period, the company had a net asset value of 11 sen. It was also in a net cash position of some RM16mil.

Tan’s other holdings, namely Keladi Maju Bhd and GPA Holdings Bhd, have started to appear on the volume list of Bursa. Tan has a 16.8% stake in Keladi and a 23% stake in GPA.

Keladi ended the day 0.5 sen higher at 36 sen on a volume of 15 million shares, while GPA closed 0.5 sen lower at 10.5 sen on a volume of 15.57 million shares.